Bradley sporting goods estimates that it will need 6,000 dozens of tennis balls next year. Policy manual of the club prescribes to impute 16% carrying cost .The cost involved in handling each purchase order is Rs.300.Price quoted by the supplier is Rs.360 per dozen.

Requirements:

• Compute EOQ
• Secretary of the club proposes to buy 2,000 dozens tennis ball in each order. Show how much the club can save by buying in EOQ.

Frequency of orders in case of EOQ.